Understanding San Francisco’s Short-Term Rental Regulations

Prior to 2015, San Francisco ordinance made the practice of short-term vacation rentals illegal. Any occupation of less than 30 days in a multi-unit dwelling was prohibited. Though this was rarely enforced, the city moved towards more comprehensive ruling in response to the popularity of Airbnb and private vacation rentals. This was also intended to protect the city’s residents access to affordable housing. 

The 2015 laws imposed much stricter rules around who can rent, how often and for how long. The city of San Francisco now has some of the most stringent regulations for short-term rentals and created the Office Of Short-term Rentals to enforce them. This article provides a comprehensive review of San Francisco’s short-term rental regulations to ensure hosts remain compliant when hosting. You can review these regulations and ordinances in further detail via the city’s website.

Summary of San Francisco’s Short Term Rental Regulations

• A property owner must also be a resident of San Francisco. A resident is defined as someone who personally occupies a property for a minimum of 275 nights per year. 
• You may only host in your primary residence. 
• The property must have liability insurance with at least $500,000 in coverage.
  • Alternatively, it may be rented via a hosting service that offers their own insurance.
• Your rental is required to be completely up to date and compliant with the city’s building code.
• You may not rent out your property un-hosted for more than 90 days per year.
• You must register with San Francisco Treasurer and Tax Collector to obtain a Business Account Number or BAN. This is free of charge.
• You must also register with the Office of Short-term Rentals. You will need the above mentioned BAN to apply and the cost is $450. This registration lasts for two years. 
• 14% Transient Occupancy Tax (TOT) applies to all stays under 30 days. 

San Francisco’s Airbnb Regulations for Hosting Vacation Rentals

A short-term rental in the city of San Francisco is defined as any stay less than 30 days in duration. Stays in excess of this are not subject to short-term rental regulations. San Franciscans with vacation homes or secondary properties in the city will not be permitted to lease these out in addition to their primary residence. 

Short-term rental is limited to a maximum of five simultaneous bookings in one dwelling at a time. Short-term rental is limited to a maximum of 90 days per calendar year, unless the host is present in which case there is no limit. To register, residents must contact the San Francisco Treasurer and Tax Collector to obtain a Business Account Number (BAN) which is then used to obtain their approval certificate from the Office of Short-term rentals. 

When applying for the Short Term Rental Certificate, in addition to the BAN and Building Code Compliance check, hosts will also need to also need to submit:

• Government issued photo identification
• Proof of property liability insurance
• Non-refundable application fee of $450 
• Proof of residency

The short-term rental (STR) number on the certificate must be included with a listing at all times and the BAN is to be renewed annually and the STR every two years. 

According to the Office of Short-term Rentals, certain properties are not eligible to apply for registration for short-term rental in San Francisco, they:

• Cannot be located in The Presidio, Fort Mason, or Treasure Island areas
• Cannot be single room occupancy (SRO) or dormitory style accommodation 
• Cannot be commercial and industrial spaces
• Cannot be subject to an Ellis Act eviction after November, 2014
• Cannot be a Below-Market-Rate (BMR) or Public Housing unit 
• Cannot have sleeping quarters in outdoor areas, including treehouses and vehicles

If a property is eligible and approved, each quarter, hosts must submit a report online via the Office of Short-term Rentals detailing the number of days the property was rented in that period. Reporting must be done by the registered host, not a booking platform. Rent controlled residences are permitted to register, but face an additional ruling. They may not earn more in rent via hosted stays than they pay to their landlord in the same calendar month. 

San Francisco Short-Term Rental Taxes

Hosts in San Francisco are subject to the same 14% Transient Occupancy Tax as commercially run hotels in the city. Short-term rentals listed with AirBnb can have this paid by AirBnB and AirBnb is currently the only platform that offers this and is approved to pay this tax on behalf of its hosts. Alternatively, hosts can collect and pay these taxes themselves annually by January 31st as a Small Operator. Properties earning in excess of $40,000 will need to obtain a Certificate of Authority and pay the TOT monthly. Both the Small Operator approval and Certificate of Authority are applied for via the Treasurer and Tax Collector website. 

In addition, hosts must file and pay Business Personal Property Tax via the City of San Francisco’s Assessors Office. This is done via submission of form 571-STR. This needs to be done annually, unless you meet the listed exclusions found on their website. Penalties For Non-Compliance start at $484 per day per dwelling in violation. These penalties continue to accumulate until all concerns are resolved. Repeat violations may incur civil or criminal penalties. 

We cannot guarantee the accuracy of the regulations discussed in this article. Regulations often change on a regular basis, and we advise you to research the current regulations for your location. While we do our best to keep the information in this article updated, if you find an error, omission, or something that needs an update, please let us know.

Useful Links Related to Short-Term Rentals in San Francisco

City of San Francisco – Short-Term Residential Rental Guide with FAQS

City of San Francisco – Office of Short-term Rentals: https://shorttermrentals.sfgov.org 

City of San Francisco – Treasurer and Tax Collector: https://sftreasurer.org/registration

City of San Francisco – Short-Term Rental Registration: https://businessportal.sfgov.org/forms/short-term-rental-intro

City of San Francisco – Building Code Compliance Check: https://sfplanninggis.org/PIM/

City of San Francisco – Assessors Office: https://www.sfassessor.org 

City of San Francisco – Office of Short Term Rentals Short Term Renter Starter Kit: https://businessportal.sfgov.org/start/starter-kits/short-term-rental 

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